ECN 503 Lecture Notes - Lecture 1: List Of Caribbean Membranophones, Grameen Bank, Uee
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3) protection against risk of fluctuating income is by savings or by diversifying sources of income: pattern of savings: poor save in periods when income is high, draw on savings when, paxson (1992): rainfall by region on thailand used as a proxy for temporary income times are low shocks, it is found that saving is responsive to such transitory shocks a) saving instruments for poor are limited. Hui participation has not declined: rules: group of individual"s get together periodically, allocate a pot of funds to one group member, process continues until each member has won the pot once (winners excluded, enhances household capital accumulation of indivisible items a) examples, ligron (1993): studied lender borrower arrangements in indian villages, lender provides, udry (1994): informal credit institutions in northern nigeria, involve lending and incentives to borrower to commit effort to repaying borrowing arrangements between friends and family.